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Retail Management (India)

1.
RETAIL MANAGEMENT
Retail management is the sale by seller in smallRetail management is the sale by seller in small
quantities to customer not for resale.quantities to customer not for resale.
It is the process of bringing the ultimate user toIt is the process of bringing the ultimate user to
the main producer, through a series of stages,the main producer, through a series of stages,
where retailing is the last one. It is not limited towhere retailing is the last one. It is not limited to
quantities, but limited to the exact requirement ofquantities, but limited to the exact requirement of
the ultimate user. It includes various processesthe ultimate user. It includes various processes
which help the customers to procure the desiredwhich help the customers to procure the desired
merchandise from retail stores for their end use.merchandise from retail stores for their end use.

2.
RETAIL MIX
Retail mix is a blend of traits that workRetail mix is a blend of traits that work
together to form a distinct retail operation.together to form a distinct retail operation.
Retailers examine their retail mix forRetailers examine their retail mix for
formulating strategy. The retailing mixformulating strategy. The retailing mix
approach helps business managersapproach helps business managers
consider how to use each of traits inconsider how to use each of traits in
meeting the needs and desires ofmeeting the needs and desires of
customers.customers.

3.
Retail SectorRetail Sector
The retail sector can be divided into two
segments:
• Value retailing- which is typically a low
margin- high volume business (primarily
food and groceries)
• Lifestyle retailing- which is a high
margin-low volume business ( apparel,
footwear, etc )

5.
EMERGING SECTORS IN
RETAILING
Retailing is one of the largest sectors in the
global economy. It is going through a
transition phase not only in India but the
world over. The corner grocery store is slowly
giving way to international formats of
retailing. The traditional food and grocery
segment has seen the emergence of
supermarkets/grocery chains (Food World,
Nilgiris, and Apna Bazaar), books/music/gifts
(Archie’s, MusicWorld, Crosswords,
Landmark).

6.
RETAIL INDUSTRY IN
INDIA
Retail is India’s largest industry, accountingRetail is India’s largest industry, accounting
for over 10 percent of the country. Its GDP isfor over 10 percent of the country. Its GDP is
around eight percent of employment. Retail inaround eight percent of employment. Retail in
India is at the crossroads. It has emerged asIndia is at the crossroads. It has emerged as
one of the most dynamic and fast pacedone of the most dynamic and fast paced
industries with several players entering theindustries with several players entering the
market. The market is growing, governmentmarket. The market is growing, government
policies are becoming more favorable andpolicies are becoming more favorable and
emerging technologies are facilitatingemerging technologies are facilitating
operations.operations.

7.
FOREIGN DIRECT INVESTMENT
IN RETAILING IN INDIA
Until 2011, Indian central governmentUntil 2011, Indian central government
denied FDI in multi-brand retail, forbiddingdenied FDI in multi-brand retail, forbidding
foreign groups from any ownership inforeign groups from any ownership in
supermarkets, convenience stores or anysupermarkets, convenience stores or any
retail outlets. Even single-brand retail wasretail outlets. Even single-brand retail was
limited to 51% ownership and alimited to 51% ownership and a
bureaucratic process.bureaucratic process.

8.
CURRENT STATUS OF FDI FORCURRENT STATUS OF FDI FOR
SINGLE BRAND RETAIL STORESSINGLE BRAND RETAIL STORES
In November 2011, India’s centralIn November 2011, India’s central
government announced retail reforms for bothgovernment announced retail reforms for both
multi-brand stores and single brand stores. Inmulti-brand stores and single brand stores. In
January 2012, India approved reforms for single-January 2012, India approved reforms for single-
brand stores welcoming anyone in the world tobrand stores welcoming anyone in the world to
innovate in Indian retail market with 100%innovate in Indian retail market with 100%
ownership. But imposed the requirement that theownership. But imposed the requirement that the
single brand retailer source 30% of its goodssingle brand retailer source 30% of its goods
from India.from India.

9.
CURRENT STATUS OF FDI FORCURRENT STATUS OF FDI FOR
MULTI-BRAND RETAIL STORESMULTI-BRAND RETAIL STORES
On 14 September 2012, the government ofOn 14 September 2012, the government of
India announced the opening of FDI inIndia announced the opening of FDI in
multi-brand retail, subject to approvals bymulti-brand retail, subject to approvals by
individual states. On 20 September 2012,individual states. On 20 September 2012,
the government of India formally notifiedthe government of India formally notified
the FDI reforms for single and multi-brandthe FDI reforms for single and multi-brand
retail, thereby making it effective underretail, thereby making it effective under
Indian law. On 7 December, 2012, theIndian law. On 7 December, 2012, the
Federal Government of India allowed 51%Federal Government of India allowed 51%
FDI in multi-brand retail in India.FDI in multi-brand retail in India.

10.
GROWTH OF RETAILING IN
INDIA
Indian retailing industry has seen
phenomenal growth in the last few
years. Currently, India is the 5th
largest
retail market in the world. The country
ranks fourth among the surveyed 30
countries in terms of global retail
development.

15.
TECHNOLOGY IMPACT ON
RETAIL
Retailing is a ‘technology-intensive'Retailing is a ‘technology-intensive'
industry. It is quoted that everyday at leastindustry. It is quoted that everyday at least
500 gigabytes of data are transmitted via500 gigabytes of data are transmitted via
satellite. Online systems link point-of-salessatellite. Online systems link point-of-sales
terminals to the main office where detailedterminals to the main office where detailed
analyses on sales by item, classification,analyses on sales by item, classification,
stores or vendor are carried out online.stores or vendor are carried out online.
Besides vendors, the focus of the retailingBesides vendors, the focus of the retailing
sector is to develop the link with thesector is to develop the link with the
consumer.consumer.

16.
CONCLUSION
Retailing, thus enjoys many uniqueRetailing, thus enjoys many unique
features. Inefficiency in retailing leads tofeatures. Inefficiency in retailing leads to
lower profitability of the retailers and lowerlower profitability of the retailers and lower
service outputs for the consumers.service outputs for the consumers.
Steps to strengthen the position of theSteps to strengthen the position of the
retailing industry must be taken. Suchretailing industry must be taken. Such
steps may include establishment ofsteps may include establishment of
retailer’s co-operatives, merger and buy-retailer’s co-operatives, merger and buy-
out, use of technology to the greatestout, use of technology to the greatest
possible extent, setting up of non-storepossible extent, setting up of non-store
retailing centers and increase inretailing centers and increase in
franchisee network.franchisee network.